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Klondex Reports Strong Second Quarter 2017 Financial Results; Improves 2017 Outlook with Increased Production at Lower Costs

VANCOUVER, BC–(Marketwired – August 09, 2017) – Klondex Mines Ltd. (TSX: KDX) (NYSE American: KLDX) („Klondex”, the „Company”, „we”, „our”, or „us”) is pleased to announce its operational and financial results for the second quarter of 2017. This press release should be read in conjunction with our 2017 second quarter report on Form 10-Q, which includes our unaudited Condensed Consolidated Financial Statements and related Management’s Discussion and Analysis of Financial Condition and Results of Operations („MD&A”), which are available on our website (www.klondexmines.com), on SEDAR (www.sedar.com), and on EDGAR (www.sec.gov). All dollar amounts included in this press release are expressed in thousands of United States dollars, unless otherwise noted, and are based on our MD&A and our unaudited Condensed Consolidated Financial Statements, which were prepared in accordance with Generally Accepted Accounting Principles in the United States („GAAP”). References to „Notes” refers to the notes contained in the second quarter of 2017 unaudited Condensed Consolidated Financial Statements. „Nevada Operations” consists of the Fire Creek, Midas and Hollister mines.

Second Quarter 2017 Highlights

  • Operating cash flows – We generated $30.0 million of operating cash flow in Q2 2017 compared to $15.4 million a year ago quarter, an increase of approximately 95%.
  • Ounces sold and financial results – We sold 69,511 gold equivalent ounces („GEOs”), consisting of 65,293 gold ounces and 307,899 silver ounces. Revenue was a quarterly record of $86.8 million, up 74% from a year ago quarter, from average realized selling prices per gold and silver ounce of $1,249 and $17.10, respectively. Net income for the quarter was $7.7 million (or $0.04 per share – basic) compared to a net loss of $4.5 million (or ($0.03) per share – basic) a year ago quarter.
  • Cash flows and liquidity – We improved our strong financial position and liquidity in Q2. Our ending cash balance was $41.5 million after $30.0 million of operating cash inflows, $18.0 million used in investing activities, and $0.1 million used in financing activities. Ending working capital was $28.8 million and total liquidity was $51.8 million when including the $23.0 million of Revolver availability.
  • Full year consolidated production guidance – As a result of the strong operational performance in Nevada, we are increasing our consolidated production guidance to 213,000 – 230,000 GEOs, up slightly from 210,000 – 225,000 GEOs. Additionally, we are lowering our consolidated production cash costs per gold equivalent ounce sold(1) to $675 – $700, down slightly from our original guidance of $680 – $710.
  • Nevada operational guidance – Due to higher than anticipated grades at Midas and Fire Creek, we are increasing our production guidance for Nevada to 172,000 – 185,000 GEOs and lowering our production cash costs per gold equivalent ounce sold guidance to $625 – $650.
  • Consolidated performance – We mined a total of 53,235 GEOs, in line with management’s expectations. Mined ounces are calculated using tons hauled from underground to surface multiplied by the assays from production sampling. We produced a total of 66,618 GEO’s, a quarterly record for the Company.
  • Nevada performance – At Fire Creek, Midas, and Hollister, the Company mined 89,524 ore tons in the second quarter at an average mined head grade of 0.52 GEOs per ton. The Company’s mining activity performed as planned, which resulted in an estimated 46,889 GEOs mined. Production cash costs per gold equivalent ounce sold in Nevada was $554 which is below our 2017 revised guidance range of $625 to $650. We anticipate that total annual production cash costs per gold equivalent ounce sold in Nevada to be in line with our revised guidance.
  • Midas Mill modifications – The Company has added a tails thickener to the Midas mill. The addition of the thickener will extend the life of the mill tailings facilities and reduce future capital expenditures. The mill also converted four leach tanks to CIL („Carbon in Leach”) to be ready to process ore from the Hollister mine. This change will allow the Company to mill ore from Hollister without affecting recovery rates of ore from Fire Creek and Midas.
  • Hollister mine development – At Hollister, the Company mined 15,162 ore tons in the second quarter at an average mined head grade of 0.47 GEOs per ton for a total of 7,064 GEOs, which were stockpiled at the end of the second quarter. Stockpiled ore is expected to be processed at the Midas mill in the second half of the year. Mining rates and mined head grade are expected to increase in the second half of the year due to higher grades and as we complete development activities, increase cut-and-fill, long-hole mining rates.
  • Spending – Capital, exploration, and development spending totaled $8.1 million at Fire Creek, $5.2 million at Midas, $4.1 million at True North, $4.9 million at Hollister, $0.8 million at Aurora, and $0.1 million at corporate for total capital, exploration and development spending of $23.2 million. As a result of higher than budgeted metal prices and higher than expected production in Nevada, we are increasing our capital expenditure guidance to $63 – $71 million and our district and near mine exploration increasing to $7 to $9 million, the majority of which will be spent at Fire Creek.
  • Acquisition – On August 7, 2017 the Company entered into a definitive arrangement to acquire all of the issued and outstanding common shares of Bison Gold Resources Inc. („Bison”) by way of a Plan of Arrangement in exchange for cash or common shares of the Company or a combination of each, at the election of the Company. The consideration payable by the Company under the transaction is approximately $7.3 million (CDN$9.2 million) on a fully-diluted basis. The transaction is expected to close in the fourth quarter of 2017.

(1) This is a non-GAAP measure; refer to the Non-GAAP performance measures section of this Press Release for additional detail.

Mr. Paul Huet, President and CEO commented, „Our Q2 2017 operational and financial performance was the strongest in the Company’s history. Our core assets in Nevada continued to perform exceptionally well and, as a result, have allowed us to increase our consolidated production guidance for the year at slightly lower costs. Additionally, we have continued to maintain strong liquidity and a healthy balance sheet, ending the quarter with over $40 million in cash.” Mr. Huet continued, „We have made significant progress ramping up Hollister and True North. At Hollister, we expect to begin processing stockpiled ore in the Midas mill in Q3. At True North, after a slower than expected ramp-up in the first half of the year, we are catching up on our waste development activities which will give us access to significantly higher grade material in the second half of the year. We have also completed the installation of a new underground mobile maintenance shop providing greater equipment availability. We are well positioned to deliver on our consolidated operational guidance for the year.”

2017 full year outlook
We have updated our 2017 operating guidance. We expect to produce between 213,000 and 230,000 GEOs during 2017 at an expected production cash costs per gold equivalent ounce sold of $675 to $700. This represents an increase in gold equivalent ounces sold of approximately 40% from the prior year as we expect to benefit from production at Hollister in Nevada as well as higher production from True North in Canada as ramp-up continues. Fire Creek and Midas’ 2017 production is expected to be in line or slightly higher than the prior year as we benefit from higher than expected mined head grades. At True North in Canada, due to a longer than expected ramp-up in the first half of the year, we now expect our cash costs per gold equivalent ounce sold to be $900 – $950 for the year.

We now expect our 2017 capital expenditures to be between $63 and $71 million with an additional $7 and $9 million to be spent on district and near mine exploration. The majority of capital is expected to be spent at Fire Creek as we continue underground expansion in the form of primary access development and advancement of a second portal.

Below are tables summarizing key 2017 operating guidance.

             
    Gold Equivalent
Ounces Produced
(1)
  Production Cash Costs
per Gold Equivalent
Ounce Sold
(1)
  Capital Expenditures (thousands)
2017 full year outlook   Low   High   Low   High   Low   High
Midas     45,000     50,000   $ 800   $ 850   $ 9,000   $ 10,000
Midas Mill                     6,000     8,000
Fire Creek     97,000     100,000     425     450     27,000     29,000
Hollister     30,000     35,000     935     960     6,000     8,000
  Nevada Total     172,000     185,000     625     650     48,000     55,000
 True North(2)     41,000     45,000     900     950     15,000     16,000
      213,000     230,000   $ 675   $ 700   $ 63,000   $ 71,000
                                     
      Low     High                        
Corporate general and administrative (thousands)   $ 17,000   $ 18,000                        
Hollister development and project costs (thousands)   $ 9,000   $ 9,000                        
All-in sustaining costs per gold ounce sold(1)   $ 950   $ 1,000                        
Regional exploration (thousands)   $ 7,000   $ 9,000                        
All-in costs per gold ounce sold(1)   $ 1,070   $ 1,130                        
(1) This is a non-GAAP measure; refer to the Non-GAAP performance measures section of this Press Release for additional detail.
(2) Based on an estimated CDN:US dollar exchange rate of 0.75:1.
 

Klondex has not reconciled forward-looking 2017 full year non-GAAP performance measures contained in this press release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty, various necessary GAAP components, including for example those related to future production costs, realized sales prices and the timing of such sales, timing and amounts of capital expenditures, metal recoveries, and corporate general and administrative amounts and timing, or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

Consolidated Financial Results of Operations

             
    Three months ended June 30,     Six months ended June 30,  
    2017     2016     2017     2016  
Revenues   $ 86,792     $ 49,993     $ 128,502     $ 86,434  
Cost of sales                                
  Production costs     41,698       22,576       67,927       42,907  
  Depreciation and depletion     14,872       6,426       22,600       12,229  
  Write-down of production inventories     2,235             5,915        
      27,987       20,991       32,060       31,298  
Other operating expenses                                
  General and administrative     5,727       3,180       10,215       6,598  
  Exploration     1,299       3,230       1,426       4,842  
  Development and projects costs     3,881       4,764       9,386       5,530  
  Asset retirement and accretion     380       252       761       499  
  Business acquisition costs           343             1,052  
  Provision for legal settlement           2,250             2,250  
  Loss on equipment disposal     26       4       142       4  
Income from operations     16,674       6,968       10,130       10,523  
Other income (expense)                                
  (Loss) gain on derivatives, net     1,664       (8,637 )     (480 )     (14,281 )
  Interest (expense), net     (1,099 )     (1,344 )     (2,257 )     (2,731 )
  Foreign currency (loss) gain, net     (3,083 )     4       (4,104 )     (2,550 )
  Interest income and other (expense), net     88       (46 )     105       5  
Income (loss) before tax     14,244       (3,055 )     3,394       (9,034 )
  Income tax (expense) benefit     (6,552 )     (1,429 )     (5,929 )     (2,113 )
Net income (loss)   $ 7,692     $ (4,484 )   $ (2,535 )   $ (11,147 )
                                 
Net income (loss) per share                                
  Basic   $ 0.04     $ (0.03 )   $ (0.01 )   $ (0.08 )
  Diluted   $ 0.04     $ (0.03 )   $ (0.01 )   $ (0.08 )
                                   

Second quarter 2017
Revenues increased in the second quarter of 2017 as compared to the second quarter of 2016 due to higher production volume from Fire Creek and Midas and the addition of production at True North. These factors also contributed to the increase in revenues in the first six months of 2017 as compared to the same period in 2016. Consolidated ore tons milled during the first half of 2017 and 2016 were 251,810 and 159,949, respectively. Increases in production costs during the three and six months ended June 30, 2017, as compared to the same periods in 2016 were driven by the addition of True North, higher depreciation and depletion expense and higher volumes of ounces sold during the periods.

General and administrative costs increased during three and six months ended June 30, 2017 as compared to the same periods in 2016 due to higher compensation and benefit costs from increased staff levels at the corporate office and professional fees, both of which are due to our growth. We also experienced higher legal fees of approximately $0.7 million for litigation during the three and six months ended June 30, 2017.

Development and project costs during the three and six months ended June 30, 2017 were $3.2 million and $8.7 million, respectively at Hollister. These costs were generally for rehabilitating drifts, and ramps which enable us to physically access the underground stopes and working faces, drilling, engineering, metallurgical, and other related costs to delineate or expand mineralization, all of which occurred in the Main and Gloria zones. From January 1 to May 31, 2017, these costs were expensed as Hollister did not have a reserve. We issued a reserve for the Main and Gloria zones with an effective date of May 31, 2017, and as such, certain costs for these zones incurred beginning June 1, 2017 were capitalized.

Liquidity and Capital Resources

           
    Three months ended June 30,   Six months ended June 30,  
    2017   2016   2017   2016  
Net income (loss)   $ 7,692   $ (4,484 ) $ (2,535 ) $ (11,147 )
Net non-cash adjustments     17,237     12,515     28,179     24,191  
Net change in non-cash working capital     5,089     7,394     361     4,021  
  Net cash provided by operating activities     30,018     15,425     26,005     17,065  
  Net cash used in investing activities     (18,008 )   (11,668 )   (35,016 )   (43,597 )
  Net cash (used) provided by financing activities     (138 )   2,292     2,742     3,683  
  Effect of foreign exchange on cash balances     122     (26 )   181     629  
    Net increase (decrease) in cash     11,994     6,023     (6,088 )   (22,220 )
    Cash, beginning of period     29,554     30,854     47,636     59,097  
    Cash, end of period   $ 41,548   $ 36,877   $ 41,548   $ 36,877  
                           

Second quarter 2017
During the three and six months ended June 30, 2017 and 2016, operating cash flows were positively impacted by higher GEO’s sold for the six months ended June 30, 2017. During the three months ended June 30, 2017, net cash used in investing activities increased by $6.3 million as a result of larger capital expenditures as compared to the same period of the prior year. During the six months ended June 30, 2017, net cash used in investing activities decreased by $8.6 million as compared to the first half of 2016, as the True North acquisition resulted in a $20 million cash payment during the first half of 2016. This decrease was offset by higher 2017 capital expenditures. During the three months ended June 30, 2017, $0.1 million net cash used by financing activities was primarily due to debt payments. During the three months ended June 30, 2016, $2.3 million net cash provided by financing activities was the result of option and warrant exercises. During the six months ended June 30, 2017, net cash provided by financing activities decreased by $0.9 million compared to the first half of 2016 as fewer options and warrants were exercised.

Working capital and liquidity
We maintained our strong financial position and as of June 30, 2017, we had total liquidity of $51.8 million, consisting of $28.8 million in working capital and $23.0 million of borrowing availability under our Revolver.

Second Quarter 2017 and Year to Date Summary Operational Results

       
    Three months ended June 30, 2017  
Mine operations   Fire Creek     Midas     Hollister   Nevada Total     True North     Total  
Ore tons mined     33,929       40,433       15,162     89,524       44,896       134,420  
Average gold equivalent mined head grade (oz/ton)(1)     0.78       0.33       0.47     0.52       0.14       0.40  
Gold equivalent mined (oz)(1)     26,328       13,499       7,064     46,889       6,333       53,235  
Gold mined (oz)(1)     25,974       9,842       6,509     42,325       6,333       48,658  
Silver mined (oz)(1)     25,823       267,709       40,587     334,119             334,119  
Ore tons milled     49,060       43,172             92,232       69,675       161,907  
Average gold equivalent mill head grade (oz/ton)(1)     1.01       0.36             0.70       0.11       0.45  
Average gold mill head grade (oz/ton)     1.00       0.26             0.65       0.11       0.42  
Average silver mill head grade (oz/ton)(2)     0.75       7.28             3.81             2.17  
Average gold recovery rate (%)     92.3 %     92.4 %           92.3 %     92.0 %     92.3 %
Average silver recovery rate (%)(2)     85.5 %     83.3 %           83.5 %     %     83.5 %
Gold equivalent produced (ounces)(1)     45,769       13,928             59,696       6,911       66,618  
Gold produced (oz)     45,341       10,351             55,692       6,911       62,603  
Silver produced (oz)     31,316       261,809             293,125             293,125  
Gold equivalent sold (oz)(1)     47,366       15,301             62,667       6,832       69,511  
Gold sold (oz)     46,969       11,492             58,461       6,832       65,293  
Silver sold (oz)     29,052       278,847             307,899             307,899  
Revenues and realized prices                                              
Gold revenue (000s)   $ 58,753     $ 14,380           $ 73,133     $ 8,394     $ 81,527  
Silver revenue (000s)     497       4,768             5,265             5,265  
  Total revenues (000s)   $ 59,250     $ 19,148     $   $ 78,398     $ 8,394     $ 86,792  
Average realized gold price ($/oz)   $ 1,251     $ 1,251           $ 1,251     $ 1,229     $ 1,249  
Average realized silver price ($/oz)   $ 17.11     $ 17.10           $ 17.10     $ 18.00     $ 17.10  
Non-GAAP Measures                                              
Production cash costs per GEO sold(2)(3)   $ 442     $ 898           $ 554     $ 1,273     $ 624  
(1) Gold equivalent ounces („GEO”) and grades are computed as the applicable gold ounces/grade plus the silver ounces/grade divided by a GEO ratio. GEO ratios are computed by dividing the average realized gold price per ounce by the average realized silver price per ounce received by the Company in the respective period. Mined ounces are calculated using tons hauled to surface multiplied by the assays from production sampling.
(2) The Company does not track this silver statistic at True North due to silver being trivial to that operation.
(3) This is a non-GAAP measure; refer to the Non-GAAP performance measures section of this Press Release for additional detail.
 
       
    Six months ended June 30, 2017  
Mine operations   Fire Creek     Midas     Hollister   Nevada Total     True North     Total  
Ore tons mined     65,659       80,586       22,500     168,745       73,582       242,327  
Average gold equivalent mined head grade (oz/ton)(1)     0.97       0.34       0.41     0.6       0.14       0.46  
Gold equivalent mined (ounces)(1)     63,919       27,510       9,220     100,682       10,249       110,908  
Gold mined (ounces)(1)     63,167       19,121       8,486     90,773       10,249       101,022  
Silver mined (ounces)(1)     54,081       596,476       52,307     702,864             702,864  
Ore tons milled     70,719       82,480             153,199       98,611       251,810  
Average gold equivalent mill head grade (oz/ton)(1)     1.02       0.38             0.64       0.12       0.44  
Average gold mill head grade (oz/ton)     1.01       0.28             0.58       0.12       0.40  
Average silver mill head grade (oz/ton)(2)     0.83       7.36             4.32             2.63  
Average gold recovery rate (%)     92.6 %     92.2 %           92.5 %     94.0 %     92.7 %
Average silver recovery rate (%)(2)     84.8 %     83.7 %           83.8 %     %     83.8 %
Gold equivalent produced (ounces)(1)     64,968       25,366             90,319       10,711       101,052  
Gold produced (ounces)     64,322       18,224             82,546       10,711       93,257  
Silver produced (ounces)     46,425       507,798             554,223             554,223  
Gold equivalent sold (ounces)(1)     63,906       28,061             91,950       11,247       103,219  
Gold sold (ounces)     63,347       20,273             83,620       11,232       94,852  
Silver sold (ounces)     40,197       553,702             593,899       1,000       594,899  
Revenues and realized prices                                              
Gold revenue (000s)   $ 79,004     $ 25,240           $ 104,244     $ 13,846     $ 118,090  
Silver revenue (000s)     697       9,697             10,394       18       10,412  
  Total revenues (000s)   $ 79,701     $ 34,937     $   $ 114,638     $ 13,864     $ 128,502  
Average realized gold price ($/oz)   $ 1,247     $ 1,245           $ 1,247     $ 1,233     $ 1,245  
Average realized silver price ($/oz)   $ 17.34     $ 17.51           $ 17.50     $ 18.00     $ 17.50  
Non-GAAP Measures                                              
Production cash costs per GEO sold(2)(3)   $ 434     $ 937           $ 587     $ 1,586     $ 696  
(1) Gold equivalent ounces („GEO”) and grades are computed as the applicable gold ounces/grade plus the silver ounces/grade divided by a GEO ratio. GEO ratios are computed by dividing the average realized gold price per ounce by the average realized silver price per ounce received by the Company in the respective period. Mined ounces are calculated using tons hauled to surface multiplied by the assays from production sampling.
(2) The Company does not track this silver statistic at True North due to silver being trivial to that operation.
(3) This is a non-GAAP measure; refer to the Non-GAAP performance measures section of this Press Release for additional detail.
 

Nevada operations
The Company’s Nevada operations milled a record number of tons during the second quarter of 2017. The Midas mill processed 92,232 tons of ore from Fire Creek and Midas compared to 86,194 tons in the second quarter of 2016. Fire Creek and Midas produced approximately 43% more gold equivalent ounces in the second quarter 2017 compared to the second quarter 2016 due to more tons processed through the mill. The Hollister Mine contributed 7,064 gold equivalent ounces to the total mined ounces during the second quarter. All of these ounces remained in stockpile at Hollister as of June 30, 2017. Stockpiled ore is expected to be processed at the Midas mill in the second half of the year after metallurgical test work is completed.

Canadian operations
The True North mine continues to ramp up towards full production. Mining rates increased in the second quarter 2017 compared to the first quarter 2017 with the Company also processing tons from the True North tailings. The Company expects 2017 production and grades to progressively increase throughout the year as waste development activities progress. Due to slower than expected waste development activities in the first half of the year and lower than expected equipment availability, we have increased our full year production cash costs per equivalent ounce sold guidance to $900 – $950.

All in sustaining costs
Total Company all in sustaining costs for the three and six months ended June 30, 2017 was $909 and $1,086 per gold ounce sold respectively. The Company expects to have all in sustaining costs for the year of $950 to $1,000 per gold ounce sold. (This is a non-GAAP measure; refer to the Non-GAAP Performance Measures section of the MD&A for additional detail).

Webcast and Conference Call

A conference call and webcast will be held on Thursday, August 10, 2017 at 10:30am ET/7:30am PT. The conference call telephone numbers are listed below.

Canada & USA Toll Free Dial In: +1 800-319-4610
Toronto: +1 416-915-3239
International: +1 604-638-5340

Callers should dial in 5 to 10 minutes prior to the scheduled start time and ask to join the Klondex call. The webcast will be available on the Company’s website or by clicking http://services.choruscall.ca/links/klondex20170810.html.

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.

Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, „forward-looking information”), including but not limited to the future exploration, development and production plans of Klondex. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which mineral reserve estimates are reflective of actual mineral reserves; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.

Non-GAAP performance measures
We have included the non-GAAP measures „Production cash costs per gold equivalent ounce sold”, „All-in sustaining costs per gold ounce sold”, and „All-in costs per gold ounce sold” in this press release (collectively, the „Non-GAAP Measures”). These Non-GAAP Measures are used internally to assess our operating and economic performance and to provide key performance information to management. We believe that these Non-GAAP Measures, in addition to conventional measures prepared in accordance with GAAP, provide investors with an improved ability to evaluate our performance and ability to generate cash flows required to fund and sustain our business. These Non-GAAP Measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These Non-GAAP Measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to or consistent with measures used by other issuers or with amounts presented in our financial statements.

Our primary business is gold production and our current and future operations, development, exploration, and life-of-mine plans primarily focus on maximizing returns from such gold production. As a result, our Non-GAAP Measures are calculated and disclosed on a per gold or gold equivalent ounce basis.

Production cash costs per gold equivalent ounce sold
Production cash costs per gold equivalent ounce sold presents our cash costs associated with the production of gold equivalent ounces and, as such, non-cash depreciation and depletion charges are excluded. Production cash costs per gold equivalent ounce sold is calculated on a per gold equivalent ounce sold basis, and includes all direct and indirect operating costs related to the physical activities of producing gold, including mining, processing, third-party refining expenses, on-site administrative and support costs, royalties, and cash portions of net realizable value write-downs on production-related inventories (State of Nevada net proceeds and other such taxes are excluded). We believe that converting the benefits from selling silver ounces into gold ounces is helpful to analysts and investors as it best represents the way we operate, which is to maximize returns from gold production. Gold equivalent ounces are computed using the number of silver ounces required to generate the revenue derived from the sale of one gold ounce, using average realized selling prices (in thousands, except ounces sold and per ounce amounts):

     
    Three months ended June 30, 2017
    Fire Creek   Midas   Nevada Total   True North   Total
Average realized price per gold ounce sold   $ 1,251   $ 1,251   $ 1,251   $ 1,229   $ 1,249
Average realized price per silver ounce sold   $ 17.11   $ 17.10   $ 17.10   $   $ 17.10
  Silver ounces equivalent to revenue from one gold ounce     73.1     73.2     73.2         73.0
Silver ounces sold     29,052     278,847     307,899         307,899
  GEOs from silver ounces sold     397     3,809     4,206         4,218
Gold ounces sold     46,969     11,492     58,461     6,832     65,293
  Gold equivalent ounces   $ 47,366   $ 15,301     62,667     6,832     69,511
Production costs   $ 20,946   $ 13,494   $ 34,440   $ 7,258   $ 41,698
Add: Write-down of production inventories (cash portion)         249     249     1,442     1,691
    $ 20,946   $ 13,743   $ 34,689   $ 8,700   $ 43,389
  Production cash costs per GEO sold   $ 442   $ 898   $ 554   $ 1,273   $ 624
                     
    Six months ended June 30, 2017
    Fire Creek   Midas   Nevada Total(1)   True North   Total
Average realized price per gold ounce sold   $ 1,247   $ 1,245   $ 1,247   $ 1,233   $ 1,245
Average realized price per silver ounce sold   $ 17.34   $ 17.51   $ 17.50   $ 18.00   $ 17.50
  Silver ounces equivalent to revenue from one gold ounce     71.9     71.1     71.3     68.5     71.1
Silver ounces sold     40,197     553,702     593,899     1,000     594,899
  GEOs from silver ounces sold     559     7,788     8,330     15     8,367
Gold ounces sold     63,347     20,273     83,620     11,232     94,852
  Gold equivalent ounces   $ 63,906   $ 28,061   $ 91,950     11,247     103,219
Production costs   $ 27,727   $ 26,036   $ 53,763   $ 14,164   $ 67,927
Add: Write-down of production inventories (cash portion)         249     249     3,676     3,925
    $ 27,727   $ 26,285   $ 54,012   $ 17,840   $ 71,852
  Production cash costs per GEO sold   $ 434   $ 937   $ 587   $ 1,586   $ 6961
(1) Nevada Total includes Fire Creek and Midas.
 

All-in sustaining costs per gold ounce sold
All-in sustaining cost („AISC”) amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.

Our calculation of AISC per gold ounce sold is consistent with the June 2013 guidance released by the World Gold Council, a non-regulatory, non-profit market development organization for the gold industry. AISC per gold ounce sold reflects the varying costs of producing gold over the life-cycle of a mine or project, including costs required to discover and develop new sources of production; therefore, capital amounts related to expansion and growth projects are included.

AISC per gold ounce includes all: (1) direct and indirect operating cash costs related to the physical activities of producing gold, including mining, processing, third-party refining expenses, on-site administrative and support costs, royalties, and cash portions of net realizable value write-downs on production-related inventories (2) general and administrative expenses, (3) asset retirement and accretion expenses, and (4) sustaining capital expenditures, the total of which is reduced for revenues earned from silver sales. Certain cash expenditures, including State of Nevada net proceeds and other related taxes, federal tax payments, and financing costs are excluded.

All-in costs per gold ounce sold
All-in costs per gold ounce sold includes additional costs which reflect the varying costs of producing gold over the life-cycle of a mine or project. We calculate our all-in costs per gold ounce sold by beginning with the AISC total and adding non-sustaining (growth) capital expenditures and exploration and development expenditures.

AISC per gold ounce sold and all-in costs per gold ounce sold are presented in the table below (in thousands, except ounces sold and per ounce amounts):

       
    Three months ended June 30,  
    2017  
    Fire
Creek
    Midas(1)     Nevada
Total
(2)
    True
North
  Hollister,
Aurora,
and
Corporate
  Total  
Production costs   $ 20,946     $ 13,494     $ 34,440     $ 7,258   $   $ 41,698  
Add: Write-down of production inventories (cash portion)           249       249       1,442         1,691  
      20,946       13,743       34,689       8,700         43,389  
Asset retirement cost assets and accretion     36       176       212       29     139     380  
Sustaining capital expenditures     7,014       4,359       11,373       3,776         15,149  
General and administrative     238       205       443       175     5,109     5,727  
Less: silver revenue     (497 )     (4,768 )     (5,265 )             (5,265 )
  All-in sustaining costs     27,737       13,715       41,452       12,680     5,248     59,380  
                                             
Gold ounces sold     46,969       11,492       58,461       6,832         65,293  
                                             
  All-in sustaining costs per gold ounce sold   $ 591     $ 1,193     $ 709     $ 1,856   $   $ 909  
                                             
All-in sustaining costs     27,737       13,715       41,452       12,680     5,248     59,380  
Non-sustaining capital expenditures     666       357       1,023       300     1,536     2,859  
Exploration     462       476       938           361     1,299  
Development and projects costs                           3,881     3,881  
All-in costs   $ 28,865     $ 14,548     $ 43,413     $ 12,980   $ 11,026   $ 67,419  
                                             
Gold ounces sold     46,969       11,492       58,461       6,832         65,293  
                                             
All-in costs per gold ounce sold   $ 615     $ 1,266     $ 743     $ 1,900   $   $ 1,033  
(1) Midas includes $1.9 million in capital expenditures for the milling facility.
(2) Nevada Total includes Fire Creek and Midas.
 
       
    Six months ended June 30,  
    2017  
    Fire
Creek
    Midas(1)     Nevada
Total
(2)
    True
North
    Hollister,
Aurora,
and
Corporate
  Total  
Production costs   $ 27,727     $ 26,036     $ 53,763     $ 14,164     $   $ 67,927  
Add: Write-down of production inventories (cash portion)           249       249       3,676           3,925  
      27,727       26,285       54,012       17,840           71,852  
Asset retirement cost assets and accretion     72       353       425       59           484  
Capital expenditures     13,818       9,707       23,525       7,234       156     30,915  
General and administrative     429       361       790       428       8,997     10,215  
Less: silver revenue     (697 )     (9,697 )     (10,394 )     (18 )         (10,412 )
  All-in sustaining costs     41,349       27,009       68,358       25,543       9,153     103,054  
                                               
Gold ounces sold     63,347       20,273       83,620       11,232           94,852  
                                               
  All-in sustaining costs per gold ounce sold   $ 653     $ 1,332     $ 817     $ 2,274     $   $ 1,086  
                                               
All-in sustaining costs     41,349       27,009       68,358       25,543       9,153     103,054  
Non-sustaining capital expenditures     666       553       1,219       403       2,582     4,204  
Exploration     589       476       1,065             361     1,426  
Development and projects costs                             9,386     9,386  
All-in costs   $ 42,604     $ 28,038     $ 70,642     $ 25,946     $ 21,482   $ 118,070  
                                               
Gold ounces sold     63,347       20,273       83,620       11,232           94,852  
                                               
All-in costs per gold ounce sold   $ 673     $ 1,383     $ 845     $ 2,310     $   $ 1,245  
(1) Midas includes $5.0 million in capital expenditures for the milling facility.
(2) Nevada Total includes Fire Creek and Midas.
 

IIROC Trading Halt / Suspension de la negociation par l’OCRCVM – LM

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 9, 2017) – The following issues have been halted by IIROC / L’OCRCVM a suspendu la négociation des titres suivants :

Company / Société : LINGO MEDIA CORP
TSX-Venture Symbol / Symbole à la Bourse de croissance TSX : LM
Reason / Motif : At the Request of the Company Pending News / À la demande de la société en attendant une nouvelle
Halt Time (ET) / Heure de la suspension (HE) 16:36

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

L’OCRCVM peut prendre la décision de suspendre (ou d’arrêter) temporairement les opérations à l’égard d’un titre d’une société cotée en bourse. Les arrêts des opérations sont mis en oeuvre afin d’assurer le bon fonctionnement d’un marché équitable.

L’OCRCVM est l’organisme d’autoréglementation national qui surveille l’ensemble des courtiers en placement et l’ensemble des opérations effectuées sur les marchés des titres de capitaux propres et les marchés des titres de créance au Canada.

Please note that IIROC is not able to provide any additional information regarding a specific trading halt. Information is limited to general enquiries only. Veuillez prendre note que l’OCRCVM n’est pas en mesure de fournir d’informations supplementaires au sujet d’une suspension des negociations en particulier. L’information est restreinte aux questions generales.

Organigram to Present at Canaccord Genuity Annual Growth Conference

MONCTON, NEW BRUNSWICK–(Marketwired – Aug. 9, 2017) – Organigram Holdings Inc. (TSX VENTURE:OGI) (OTCQB:OGRMF) (the „Company” or „Organigram„) is pleased to announce that it will be presenting at the Canaccord Genuity 37th Annual Growth Conference, on Thursday, August 10, 2017.

Greg Engel, Chief Executive Officer of Organigram will present to conference attendees beginning at 10:30 am EDT in the Hong Kong Room of the InterContinental Boston Hotel located at 510 Atlantic Avenue in Boston. Mr. Engel will also conduct a series of one-on-one meetings with institutional investors. Registered attendees interested in scheduling a meeting with management should contact conference coordinators.

Further, the Company announces that subject to the approval of the TSX Venture Exchange (the „TSXV„), the Company shall issue 40,000 Common Shares in the capital of Organigram to 9250-5999 Québec Inc. (the „Consultant„), a company wholly-owned by Steve Abboud, a recognized marijuana cultivation expert, pursuant to a Consultant Agreement whereby the Consultant provided consulting and advisory services in respect to the cultivation of marijuana and related matters. The Common Shares will be issued at a price of $2.29 per share. Any issuance of shares will be subject to applicable hold periods required under securities laws.

Additionally, the Company is pleased to announce that the Consultant will continue to provide marijuana cultivation consulting services, including advising on ongoing expansion matters, until December 2018. As part of this arrangement, the Consultant will be entitled to an issuance of up to $45,000 in common shares of the Company, based on the closing price of the shares on the last trading day prior to the issuance, every three months that the services are performed, and an issuance of up to $125,000 in bonus shares in December 2018 provided that certain milestones have been attained during the term of this arrangement.

For more information, visit www.Organigram.ca

About Organigram Holdings Inc.

Organigram Holdings Inc. is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of medical marijuana in Canada. Organigram is focused on producing the highest quality, condition specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations („ACMPR”).

Organigram has been ranked in the top ten Clean Technology & Life Sciences Sector on the TSX Venture Exchange 50.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, crop yields – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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Cisco Promotes David Goeckeler to Executive Vice President

Cisco Promotes David Goeckeler to Executive Vice President

SOURCE: Cisco

Cisco

August 09, 2017 17:00 ET

SAN JOSE, CA–(Marketwired – Aug 9, 2017) – Cisco (NASDAQ: CSCO) announced today that David Goeckeler, senior vice president and general manager of Networking and Security, has been promoted to executive vice president, Networking and Security. 

„David’s vision to bring the intelligent network together with a robust security architecture has made a tremendous impact at Cisco,” said Cisco CEO Chuck Robbins. „The recent launch of our intent-based network under David’s leadership is a major milestone for the industry and just one example of his many achievements.”

Goeckeler will continue to lead a global team of over 20,000 engineers responsible for networking and security technology development and market strategy. He has held leadership roles across the Security, Enterprise and Service Provider markets. He is a 17-year veteran of Cisco.

Additional Background:
David Goeckeler Biography

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products, and partners help society securely connect and seize tomorrow’s digital opportunity today. Discover more at newsroom.cisco.com and follow us on Twitter at @Cisco.

RSS Feed for Cisco: http://newsroom.cisco.com/rss-feeds

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BlackPearl Announces Second Quarter 2017 Financial and Operating Results

CALGARY, ALBERTA–(Marketwired – Aug. 9, 2017) – BlackPearl Resources Inc. („BlackPearl” or the „Company”) (TSX:PXX)(OMX:PXXS) is pleased to announce its financial and operating results for the three and six months ended June 30, 2017.

Highlights include:

  • We continued with construction of the 6,000 barrel per day (bbl/d) Phase 2 expansion of our successful Onion Lake thermal project. Facility modules started being delivered to site and we have commenced drilling injector and producer wells. Our target completion date for the expansion is mid-2018, unchanged from our original target completion date.
  • We completed the funding for the Onion Lake expansion project with the successful closing of a $75 million term debt financing in June. In addition, we maintained our strong financial position as we exited the quarter with a renewed undrawn $120 million bank credit facility and had positive working capital of $43 million.
  • Production for the quarter averaged 10,386 bbls/d, 7% higher than Q2 2016. The increase is primarily attributable to production from the Onion Lake thermal project and the partial re-initiation of the ASP flood at Mooney.
  • Net income for the first half of 2017 was $16.1 million compared to a loss of $18.3 million in the first half of 2016. Adjusted funds flow nearly doubled in the first half of 2017 to $27 million compared to the first half of 2016.

John Festival, President of BlackPearl commenting on Q2 activities indicated that „our focus in the near term is the expansion of our very successful low cost, long life thermal project at Onion Lake. We completed the financing for the project during Q2 and we are part way through construction which will see nameplate capacity double to 12,000 bbls/d. We remain on time and on budget for a mid-2018 start-up and first oil in late 2018. The on-going operating performance from the first phase of the project supports our view that Saskatchewan thermal projects are in the top decile of North American oil projects.”

Financial and Operating Highlights

Three months ended
June 30,
Six months ended
June 30,
2017 2016 2017 2016
Daily sales volumes
Oil (bbl/d) 9,843 9,004 9,973 8,723
Bitumen (bbl/d) (1) 437 553 489 568
10,280 9,557 10,462 9,291
Natural gas (mcf/d) 633 847 635 846
Combined (boe/d) (2) 10,386 9,698 10,568 9,432
Product pricing ($) (before the effects of hedging transactions)
Crude oil – per bbl 41.93 34.44 41.33 25.89
Natural gas – per mcf 2.58 1.29 2.54 1.53
Combined – per boe 41.65 34.03 41.06 25.63
Netback ($/boe)
Oil and gas sales 41.65 34.03 41.06 25.63
Realized gain on risk management contracts (0.04) 2.35 0.17 5.01
Royalties 5.87 4.58 5.89 3.20
Transportation 2.62 1.48 2.64 2.06
Operating costs 14.97 13.23 14.98 12.80
Netback (5) 18.15 17.09 17.72 12.58
($000’s, except per share amounts)
Revenue
Oil and gas revenue – gross 37,702 28,318 74,906 41,339
Net income (loss) for the period 8,318 (8,945) 16,132 (18,267)
Per share, basic and diluted 0.02 (0.03) 0.05 (0.05)
Adjusted funds flow(3) 14,179 11,497 27,103 14,775
Cash flow from operating activities (4) 15,080 7,184 29,866 10,971
Capital expenditures 53,434 945 66,790 3,022
Working capital deficiency (surplus), end of period (43,680) (4,497) (43,680) (4,497)
Long term debt 72,320 80,000 72,320 80,000
Net debt (6) 28,640 75,503 28,640 75,503
Shares outstanding, end of period 336,250,902 335,646,559 336,250,902 335,646,559

(1) Includes production from the Blackrod SAGD pilot. All sales and expenses from the Blackrod SAGD pilot are being recorded as an adjustment to the capitalized costs of the project until the technical feasibility and commercial viability of the project is established.
(2) Boe amounts are based on a conversion ratio of 6 mcf of gas to 1 barrel of oil. Boe’s may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
(3) Adjusted funds flow is a non-GAAP measure that represents cash flow from operating activities before changes in non-cash working capital related to operations and decommissioning costs. Adjusted funds flow does not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable to similar measures used by other companies. See non-GAAP measures.
(4) Cash flow from operating activities is a GAAP measure and has a standardized meaning prescribed by Canadian GAAP.
(5) Netback is a non-GAAP measure that does not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable to similar measures used by other companies. See non-GAAP measures.
(6) Net debt is a non-GAAP measure that does not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable to similar measures used by other companies. See non-GAAP measures.

Property Review

Onion Lake

Construction of the second 6,000 barrel per day phase of the Onion Lake thermal project continued throughout the quarter. The modules for the central processing facilities and well pads are being constructed in a fabrication shop near Calgary and we began moving these modules to site in July. Site preparation was completed during the quarter and field construction will ramp-up throughout the summer and fall.

In early July, we commenced drilling the steam injector and oil production wells. In total, we are planning to drill 23 injector/observation wells and 14 horizontal producer wells. Drilling is expected to be completed by the end of the year.

Our estimated capital cost of the second phase of the Onion Lake thermal project remains unchanged at $185 million, 20% lower than phase one costs, and first steam is scheduled to commence in mid-2018. Peak production rates are expected to be reached twelve months after commencement of steam injection, which is similar to what we achieved for phase one. Once the phase two expansion is completed, our Onion Lake thermal project will have a design capacity of 12,000 bbls/d. In addition, we are planning for further thermal expansion opportunities on our Onion Lake lands.

We are continuing to realize excellent operating performance from the first phase of the Onion Lake thermal project. Production averaged 5,816 bbls/d for the quarter, with a steam oil ratio of 2.5 and operating costs of $10.60 per barrel (energy costs – $4.16; non-energy – $6.44). Production, as well as operating costs, in the second quarter was impacted by a planned facility turnaround and inspection which began in late June. The turnaround was planned to coincide with drilling some of the phase two wells to reduce the amount of facility downtime. Phase one production is expected to return to full rates in August or early September.

We have also commenced a five well (2.5 net) primary drilling program in July at Onion Lake. These wells are being drilled outside of the current thermal development area.

Blackrod

Although there were no new activities undertaken in the second quarter, we continue to be pleased with the results achieved for the Blackrod SAGD pilot. After 27 months of maintaining production in excess of 500 bbls/d, we started to see natural declines in production during the second quarter, which is line with our expectations for the pilot. The pilot has cumulatively produced nearly 600,000 barrels of oil. Q2 2017 production was also impacted by a facility turnaround in June. Blackrod’s commercial operation will have the ability to further improve on oil production rates and SOR’s through applying our learnings from the pilot well and industry proven co-injection with gas or solvents. Pilot well learnings to increase production and improve SOR’s include the benefits of having bound wells that get pressure support from offsetting wells, longer horizontal well lengths and improved completion techniques using inflow control devices. We are planning to continue to operate the pilot as it produces positive cash flow and to fully understand the well characteristics through a full life cycle.

Mooney

During the second quarter, we continued to see a positive response from the re-initiation of the ASP (Alkali, Surfactant, Polymer) flood at Mooney. Production from the Mooney field averaged 1,103 bbls/d in Q2 2017, a 17% increase from Q1 2017 and a 41% increase from Q4 2016 when the ASP flood was restarted. We will continue to defer expansion of the ASP flood to our phase two and three lands until we see a sustained improvement in crude oil prices.

Production

Oil and gas production averaged 10,386 barrels of oil equivalent per day (boe/day) in the second quarter of 2017, a 7% increase compared with the second quarter of 2016. The increase in oil production reflects the successful ramp-up of production from our Onion Lake thermal project as well as increased production at Mooney as a result of the re-initiation of the ASP flood on the phase one lands earlier this year.

Average Daily Sales Volume

Three months ended
June 30,
Six months ended
June 30,
(boe/day) 2017 2016 2017 2016
Onion Lake – thermal 5,816 5,221 5,998 4,737
Onion Lake – conventional 2,087 2,138 2,117 2,185
Mooney 1,103 714 1,023 878
John Lake 801 870 804 865
Blackrod 437 553 489 568
Other 142 202 137 199
10,386 9,698 10,568 9,432

Financial Results

Oil and natural gas sales increased 33% in the second quarter of 2017 to $37.7 million from $28.3 million in the same period in 2016. The increase in oil and gas sales is attributable to a 22% increase in average sale price received and a 7% increase in production volumes (on a boe basis) in the second quarter of 2017 compared to the same period in 2016.

Our realized oil price (before the effects of risk management activities) in Q2 2017 was $41.93 per barrel compared to $34.44 per barrel for the same period in 2016. The increase in our realized wellhead price reflects higher WTI reference oil prices in Q2 2017 compared with Q2 2016 (US$48.29/bbl vs US$45.59/bbl) and tighter heavy oil differentials (US$11.14/bbl vs US$13.30/bbl), in addition to a weaker Canadian dollar relative to the US dollar ($0.743 vs $0.776).

Operating costs in Q2 2017 were similar to the first quarter of 2017 at $14.97 per barrel but were higher than the comparable period in 2016. The increase from the prior year reflects the re-start of the ASP flood at Mooney as well as the turnaround costs related to the facility maintenance on the Onion Lake thermal facility during the quarter.

Stronger crude oil prices and higher production volumes in Q2 2017 had a positive impact on our adjusted funds flow during the quarter. In Q2 2017 our adjusted funds flow was $14.2 million, significantly higher than the $11.5 million generated for the same period in 2016.

First half 2017 capital expenditures were $67 million with the majority of spending on the Onion Lake thermal expansion project.

On June 30, 2017 we issued $75 million aggregate principal amount of senior secured second lien notes („Notes”) to Prudential Capital Group. The Notes were issued at par, bear interest at 8.00% per year and mature on June 30, 2020. Proceeds from the issuance of the Notes were initially used to repay amounts outstanding under our existing credit facilities and will also be used to fund the construction of the expansion of our Onion Lake thermal project and for general corporate purposes.

In conjunction with the issuance of the Notes, the Company also amended its existing credit facilities with its banking syndicate. The amendments include an increase in the borrowing base amount from $117.5 million to $120 million. The next borrowing base review is scheduled to occur by November 30, 2017. At June 30, 2017, we had not drawn any amounts under these facilities.

The 2017 second quarter report to shareholders, including the financial statements, management’s discussion and analysis and notes to the financial statements are available on the Company’s website (www.blackpearlresources.ca) or SEDAR (www.sedar.com).

Guidance

We have not changed our plans for the remainder of 2017, with the focus being the expansion of the Onion Lake thermal project with a target completion date of mid-2018. We are planning to spend between $195 and $200 million on capital projects, up from our previous guidance of $185 and $190 million. The increase in capital spending is the result of adjusting the timing of expenditures on the Onion Lake thermal expansion.

The capital program is expected to be funded from a combination of our anticipated adjusted funds flow, proceeds from the recent issuance of the $75 million senior secured second lien notes and our undrawn senior credit facilities. Adjusted funds flow is expected to be between $52 and $57 million, down slightly from our previous guidance of $55 to $60 million. The decrease in adjusted funds flow is primarily attributable to lower forecast oil prices than what we used in previous guidance updates. For the remainder of the year we have used a WTI oil price of US$48.75, a heavy oil differential of US$11.00 and a US$ to Cdn$ exchange rate of $0.80. We have also entered into a number of hedging transactions that fix the WCS oil price on 4,500 bbl/d for the last six months of the year at a price of approximately $52.40 per barrel. Year-end 2017 debt levels are anticipated to be between $140 and $145 million, up from our previous guidance of $130 and $135 million. The increase in year-end debt levels reflects an increase in capital spending and slightly lower forecasted adjusted funds flow for the remainder of the year.

We anticipate oil and gas production to average between 10,000 and 11,000 boe/d in 2017, unchanged from our previous guidance. Production from the Onion Lake thermal facility was temporarily impacted by a facility turnaround which began in late June. Phase one production is expected to return to full rates in August or early September; however, as a result of the turnaround, corporate production for Q3 2017 is expected to be between 9,000 and 9,500 boe/d.

Non-GAAP Measures

Throughout this release, the Company uses terms „adjusted funds flow”, „operating netback” and „net debt”. These terms do not have any standardized meaning as prescribed by GAAP and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.

Adjusted funds flow is a non-GAAP measure commonly used in the oil and gas industry to assist in measuring a company’s ability to finance its capital programs, decommissioning costs, debt repayments and other financial obligations. Adjusted funds flow is defined as cash flow from operating activities before decommissioning costs incurred and changes in non-cash working capital related to operations. Adjusted funds flow is not intended to represent cash flow from operating activities or other measures of financial performance in accordance with GAAP. The Company previously referred to „adjusted funds flow” as „funds flow from operations”.

The following table reconciles non-GAAP measure adjusted funds flow to cash flow from operating activities, the nearest GAAP measure:

Three months ended
June 30,
Six months ended
June 30,
($000s) 2017 2016 2017 2016
Cash flow from operating activities 15,080 7,184 29,866 10,971
Changes in non-cash working capital related to operations (984) 3,944 (2,888) 3,288
Decommissioning costs 83 369 125 516
Adjusted funds flow 14,179 11,497 27,103 14,775

Operating netback is calculated as oil and gas revenues less royalties, production costs and transportation costs on a dollar basis and divided by total production for the period on a barrel of oil equivalent basis. Operating netback is a non-GAAP measure commonly used in the oil and gas industry to assist in measuring operating performance against prior periods on a comparable basis. Our operating netback calculation is consistent with the definition found in the Canadian Oil and Gas Evaluation (COGE) Handbook.

Net debt is calculated as long-term debt plus working capital for the period ended. Working capital consists of cash and cash equivalents, trade and other receivables, inventory, prepaid expenses and deposits, fair value of risk management assets less accounts payable and accrued liabilities, current portion of decommissioning liabilities, and fair value of risk management liabilities. Management utilizes net debt as a key measure to assess the liquidity of the Company.

Forward-looking Statements

This release contains certain forward-looking statements and forward-looking information (collectively referred to as „forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historic fact are forward-looking statements. Forward-looking statements are typically identified by such words as „seek”, „anticipate”, „plan”, „continue”, „estimate”, „expect”, „may”, „will”, „project”, „potential”, „targeting”, „intend”, „could”, „might”, „should”, „believe” or similar words suggesting future events or future performance.

In particular, this release contains forward-looking statements pertaining to the estimated capital costs of $185 million to construct the phase 2 expansion of the Onion Lake thermal project and the estimated mid-2018 completion date and estimated timing to reach peak production rates, timing to return to full production rates from phase one of the Onion Lake thermal project after facility maintenance is complete and all the information under Guidance.

The forward-looking information is based on, among other things, expectations and assumptions by management regarding its future growth, future production levels, future oil and natural gas prices, continuation of existing tax, royalty and regulatory regimes, foreign exchange rates, estimates of future operating costs, timing and amount of capital expenditures, performance of existing and future wells, recoverability of the Company’s reserves and contingent resources, the ability to obtain financing on acceptable terms, availability of skilled labour and drilling and related equipment on a timely and cost efficient basis, general economic and financial market conditions, environment matters and the ability to market oil and natural gas successfully to current and new customers. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous known and unknown risks and uncertainties that contribute to the possibility that actual results will differ from those anticipated in the forward-looking statements. Further information regarding these risk factors may be found under „Risk Factors” in the Annual Information Form, which can be accessed on SEDAR at www.sedar.com.

Undue reliance should not be placed on these forward-looking statements. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will be realized. Actual results will differ, and the differences may be material and adverse to the Company and its shareholders. Furthermore, the forward-looking statements contained in this release are made as of the date hereof, and the Company does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This is information that BlackPearl Resources Inc. is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication at 3:00 p.m. Mountain Time on August 9, 2017.

Knight appuie Synergy par un troisième prêt garanti

MONTRÉAL, QUÉBEC–(Marketwired – 9 août 2017) – Thérapeutique Knight inc. (TSX:GUD) a annoncé aujourd’hui, par le biais de l’une de ses filiales en propriété exclusive (« Knight »), l’émission d’un prêt garanti supplémentaire de 10 millions de dollars américains en faveur de Synergy CHC Corp. (OTCQB:SNYR) (« Synergy »). Ces sommes serviront à appuyer les acquisitions de produits ainsi qu’à des fins générales de fonds de roulement.

Le prêt garanti supplémentaire de 10 millions de dollars américains portera intérêt au taux de 10,5 % par an et sera échu le 9 août 2020. Dans le cadre de cette transaction, Knight recevra une commission de succès payée à l’échéance, en sus d’autres contreparties. De plus, l’entente prévoit que, sous certaines conditions, Knight pourrait émettre en faveur de Synergy jusqu’à 20 millions de dollars américains supplémentaires en financement par emprunt garanti à des modalités essentiellement semblables, afin d’appuyer de futures acquisitions.

En 2015, Knight avait émis deux prêts garantis en faveur de Synergy, totalisant 11,5 millions de dollars américains afin d’appuyer l’acquisition de FOCUSFactor et Flat Tummy Tea, deux marques réputées de santé grand public. Le solde des prêts émis en 2015 s’élève à 3,1 millions de dollars américains et leur paiement complet est fixé au 20 janvier 2018. Knight détient également 17,6 millions d’actions ordinaires en circulation de Synergy émises en faveur de Knight conjointement avec les prêts de 2015 et en vertu d’un swap de bons de souscription d’actions suivant. Knight est aussi détenteur des droits de distribution exclusive de toutes les marques de Synergy pour le Canada, Israël, la Roumanie, la Russie et l’Afrique subsaharienne.

« Nous sommes à présent bien positionnés pour maximiser nos innovations numériques existantes ainsi que nos relations de distribution afin de poursuivre notre croissance à l’interne et par d’autres acquisitions, a déclaré Jack Ross, chef de la direction de Synergy. Nous sommes aussi très reconnaissants de l’appui incroyable d’un partenaire comme Knight. »

« Nous sommes fiers de notre modeste contribution à la croissance fulgurante de Synergy au cours des deux dernières années, de zéro à plus de 30 millions en revenus, a déclaré Jonathan Ross Goodman, chef de la direction de Thérapeutique Knight inc. Nous sommes enthousiastes d’appuyer la stratégie éprouvée de Synergy en matière d’acquisition et de développement de haute gamme de produits de consommation de marques de beauté et de santé. »

À propos de Synergy CHC Corp.

Synergy CHC Corp. est une société de soins de santé et de beauté, qui développe actuellement une haute gamme de produits de consommation de marques. Sa stratégie consiste à faire croître son portefeuille tant à l’interne que par de nouvelles acquisitions. Le portefeuille diversifié de Synergy comprend les produits FOCUSFactor®, Neuragen®, Hand MD®, Flat Tummy Tea® Sneaky Vaunt® et Per-fekt Beauty®. Pour l’exercice clos le 31 décembre 2016, Synergy a déclaré des revenus de 34,8 millions de dollars. Pour plus d’information, visitez le site www.synergychc.com.

À propos de Thérapeutique Knight inc.

Thérapeutique Knight inc., établie à Montréal, au Canada, est une société pharmaceutique spécialisée qui concentre ses efforts sur l’acquisition ou l’obtention sous licence de droits de distribution de produits pharmaceutiques novateurs destinés aux marchés canadien et internationaux distinctifs. Les actions de Knight se négocient à la TSX sous le symbole « GUD ». Pour plus de renseignements concernant Thérapeutique Knight inc., consultez son site Web au www.gudknight.com ou www.sedar.com.

Énoncés prospectifs de Thérapeutique Knight inc.

Le présent document peut contenir des énoncés prospectifs et des prévisions pour Thérapeutique Knight inc. et ses filiales. Ces énoncés prospectifs, de par leur nature, comportent nécessairement des risques et des incertitudes susceptibles de faire en sorte que les résultats réels diffèrent sensiblement de ceux envisagés par ces énoncés prospectifs. Thérapeutique Knight inc. considère que les hypothèses sur lesquelles reposent ces énoncés prospectifs sont réputées raisonnables à la date de leur formulation, mais elle avertit le lecteur que ces hypothèses sur des événements à venir, dont bon nombre sont indépendants de la volonté de Thérapeutique Knight inc. et de ses filiales, pourraient se révéler incorrectes. Les facteurs et les risques susceptibles de faire en sorte que les résultats réels diffèrent sensiblement des résultats prévus font l’objet d’une discussion dans le rapport annuel de Thérapeutique Knight inc. et dans la notice annuelle de Thérapeutique Knight inc. pour l’exercice clos le 31 décembre 2016. Thérapeutique Knight Inc. rejette toute intention ou obligation d’actualiser ou de réviser tout énoncé prospectif, que ce soit en réponse à de nouveaux renseignements ou à des événements à venir, sauf si la loi l’exige.

Just Energy Reports First Quarter Fiscal 2018 Results

TORONTO, ONTARIO–(Marketwired – Aug. 9, 2017) – Just Energy Group, Inc. (TSX:JE) (NYSE:JE), a leading retail energy provider specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options, today announced results for its first quarter and full fiscal year 2018.

Key Highlights:

  • Retail channel expansion strategy remains on track with 85 new store launches across nine different retail partners. Company remains on track to achieve the goal of being present in 500 stores by fiscal year-end.
  • Combined attrition improved to 14%, driven by a five percentage point improvement in Consumer attrition year over year and a three percentage point improvement year to date in fiscal 2018. These continued improvements are the direct result of Just
    Energy’s trusted advisor strategy and long-term loyalty programs.
  • Gross RCE additions increased 20% from the prior comparable quarter driven by double-digit growth in the Consumer and Commercial divisions.
  • Net RCE additions in the Consumer division were 13,000, an increase of 41,000 from the negative 28,000 net additions last year as a result of the increasing gross Consumer customer additions and the improving Consumer attrition.
  • Company made strategic investments (operating expenditures) during the quarter to seed new international operations, expand retail channels, and further invest in product and geographic growth initiatives.
  • Sales decreased 6% from the prior comparable quarter to $847.7 million, reflecting the 7% decrease in customer base as well as lower commodity market prices.
  • Gross margin was $157.6 million, a decreased of 3% from the prior year, driven by the decline in the customer base, partially offset by a positive impact of $3.6 million from foreign exchange.
  • Base EBITDA decreased 21% to $32.5 million due to the impact of foreign exchange, primarily from the strengthening U.S. dollar resulting in an increase of $1.0 million.
  • Book value of net debt to the trailing 12-month Base EBITDA was 2.0x, significantly improved from 2.6x one year ago.
  • The Company reaffirmed its fiscal 2018 and longer-term Base EBITDA guidance.
Financial highlights
For the three months ended June 30
(thousands of dollars, except where indicated and per share amounts)
% increase
Fiscal 2018 (decrease) Fiscal 2017
Sales $ 847,706 (6)% $ 898,409
Gross margin 157,563 (3)% 162,672
Administrative expenses 48,631 9% 44,701
Selling and marketing expenses 58,076 57,790
Finance costs (net of non-cash finance charges) 9,387 (34)% 14,249
Profit1 109,309 NMF 3 482,671
Profit per share available to shareholders – basic 0.71 3.24
Profit per share available to shareholders – diluted 0.56 2.51
Dividends/distributions 21,783 16% 18,793
Base EBITDA2 32,509 (21)% 41,141
Base Funds from Operations2 20,508 (20)% 25,669
Payout ratio on Base Funds from Operations2 106% 73%
Embedded gross margin2 1,673,700 (14)% 1,936,500
Total RCEs 4,076,000 (7)% 4,386,000
1 Profit includes the impact of unrealized gains (losses), which represents the mark to market of future commodity supply acquired to cover future RCE demand. The supply has been sold to RCEs at fixed prices, minimizing any realizable impact of mark to market gains and losses.
2 See „Non-IFRS financial measures” unaudited interim condensed consolidated MD&A for the three months ended June 30, 2017.
3 Not a meaningful figure.

„Our first quarter financial results reflect the positive sales trends we are seeing in our Consumer business, combined with the expected effect of the focused investments we are making in our business to drive future growth,” commented Just Energy’s Co-CEO, Deb Merril. „Our business is well positioned to withstand the prolonged period of relative complacency in the retail energy markets that resulted in our reduced customer portfolio, without hindering our ability to pursue our long-term strategy. In line with our growth strategy, we made investments during the first quarter to seed our new international operations; expand our retail sales channels; and further invest in product and geographic growth initiatives. We are having great success in our retail channel expansion efforts. We have expanded into 85 new stores across our nine retail partners and we plan to be in 500 stores by the end of fiscal 2018. We expect these types of important growth initiatives to continue throughout the fiscal year and we remain confident we are setting the stage for prolonged, profitable growth on a global scale. These investments do have a negative effect on our near-term financial results. Fortunately, the payback period on these investments is rapid, usually under one year, and we are operating from a strong financial position to pursue these opportunities aggressively while preserving our improved balance sheet and dividend commitment.”

Co-CEO, James Lewis added, „We are receiving great customer reception and feedback around our growing suite of value-add products and long-term loyalty programs, and our geographic expansion efforts remain on track. We are increasingly confident in the customer trends we are seeing. This confidence stems from the improvements in the gross customer additions and attrition rate. Our ability to add customers is strong with gross additions increasing 20% in total year over year, led by a 28% increase in Consumer. On a net basis, Consumer additions were up once again sequentially, but the Commercial business contracted due to losses experienced during a heavy renewal quarter as we refused to engage in what we view as risky pricing tactics. We continue to aggressively pursue the milestone of reaching the one million customer threshold for enrollment in our customer loyalty program. We believe these efforts will support continued improvement in the overall customer profile and long-term profitable growth.”

Co-CEO, Deb Merril concluded, „These are exciting times at Just Energy and we want to thank our loyal shareholder for their support of our strategy. Today, we are capable of delivering more value to customers than ever in our history and we are squarely on the path to future sustained growth. In fiscal 2018, we believe we will achieve our Base EBITDA guidance.”

First Quarter Operating Performance

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  • Sales decreased by 6% to $847.7 million from $898.4 million in the first quarter of fiscal 2017, reflecting the 7% decrease in customer base as well as lower commodity market prices.
  • Gross margin was $157.6 million, a decrease of 3% from the prior comparable quarter. The decrease is attributable to the decline in the customer base, partially offset by a positive impact of $3.6 million from foreign exchange.
  • Administrative expenses increased by 9% from $44.7 million to $48.6 million as a result of higher costs required to support customer growth in the U.K., international expansion as well as efforts relating to new strategic initiatives.
  • Selling and marketing expenses of $58.1 million remained consistent with the selling and marketing expenses reported during the same period last year.
  • Total finance costs of $12.0 million decreased 33% from $18.0 million reported last year as a result of the redemption of the 6.0% convertible debentures and the senior unsecured notes, offset by the finance costs from the issuance of the 6.75% convertible debentures.
  • Base EBITDA decreased 21% to $32.5 million primarily due to the decrease in the customer base of 7% and the investment in growth initiatives partially offset by the impact of foreign exchange from the strengthening U.S. dollar resulting in an increase of $1.0 million.
  • Base FFO of $20.5 million was down 20% from the $25.7 million reported in the prior comparable period as a result of the decrease in Base EBITDA.
  • The average gross margin per RCE for the customers added and renewed by the Consumer division was $194/RCE, a decrease from $207/RCE added in the prior comparable period. The decrease is a result of a higher proportion of customer additions in the U.K. signed under 12-month contracts which carry a lower gross margin but significantly better cash flow, lower underlying expenses, and future retention potential.
  • The average gross margin per RCE for the Commercial customers signed during the quarter was $75/RCE, a decrease from $80/RCE added in the prior comparable period.
  • Customers lost through attrition and failure to renew during the three months ended June 30, 2017 were at an average gross margin of $81/RCE, an increase from $76/RCE reported in the prior comparable period due to the customers being added at higher margins in recent periods. Management will continue its margin optimization efforts by focusing on ensuring customers added meet its profitability targets.
Annual gross margin per RCE
Q1 Fiscal Number of Q1 Fiscal Number of
2018 customers 2017 customers
Consumer customers added and renewed $ 194 285,000 $ 207 216,000
Consumer customers lost 195 121,000 195 133,000
Commercial customers added and renewed 75 253,000 80 260,000
Commercial customers lost 81 259,000 76 206,000
Customer aggregation
RCE SUMMARY
April 1, Failed to June 30, % increase June 30, % increase
20171 Additions Attrition renew 2017 (decrease) 2016 (decrease)
Consumer Energy
Gas 611,000 53,000 (29,000) (7,000) 628,000 3% 642,000 (2)%
Electricity 1,186,000 81,000 (61,000) (24,000) 1,182,000 1,225,000 (4)%
Total Consumer RCEs 1,797,000 134,000 (90,000) (31,000) 1,810,000 1% 1,867,000 (3)%
Commercial Energy
Gas 270,000 27,000 (9,000) (10,000) 278,000 3% 247,000 13%
Electricity 2,144,000 84,000 (32,000) (208,000) 1,988,000 (7)% 2,272,000 (13)%
Total Commercial 2,414,000 111,000 (41,000) (218,000) 2,266,000 (6)% 2,519,000 (10)%
Total RCEs 4,211,000 245,000 (131,000) (249,000) 4,076,000 (3)% 4,386,000 (7)%
1 The balance as at April 1, 2017 has been adjusted for 9,000 large natural gas Commercial and Industrial RCEs that were not accounted for in the prior year.
  • Just Energy’s total RCE base is currently 4.1 million, a 7% decrease from one year ago. In addition to the RCEs referenced in the above table, the Consumer RCE base also includes 55,000 smart thermostat customers.
  • Gross RCE additions for the quarter were 245,000, an increase of 20% year-over-year due to more competitive pricing in the U.K. market which resulted in a 195% growth in U.K. customer additions during the first quarter of fiscal 2018.
    • Consumer gross RCE additions amounted to 134,000 during the quarter, a 28% increase year-over-year, driven by U.K. market growth.
    • Commercial gross RCE additions were 111,000, an 11% increase year-over-year, due to increased additions from large natural gas Commercial and Industrial RCEs. Just Energy remains focused on increasing the gross margin per RCE added for Commercial and, as a result, has been more selective in its market strategy.
  • Net RCE additions were a negative 135,000, compared with a negative 134,000 net RCE additions in the first quarter of last year. The slight increase is primarily a result of the lower RCE renewals in North America, partially offset by higher RCE additions and lower attrition.
  • Just Energy’s geographic footprint continues to diversify outside of North America. The U.K. operations increased their RCE base by 30% to 419,000 RCEs year-over-year and now represent 10% of the total Just Energy RCE base.
  • The combined attrition rate for Just Energy was 14% for the trailing 12 months, a one percentage point improvement from the 15% reported a year prior.
    • Consumer attrition improved five percentage points from the year ago period and down three percentage points since year end to 21% while Commercial attrition remained flat at 7%. Improved attrition reflects Just Energy’s efforts to become customers’ „trusted advisor” and improving the customer experience through relationship building by providing a variety of energy management solutions to its customer base to drive customer loyalty.
  • The renewal rate was 62% for the trailing 12 months, consistent with the renewal rate reported last quarter and one year ago.
    • The Consumer renewal rate decreased by three percentage points, while the Commercial renewal rate remained the same at 54%. The decline in Consumer renewal rate reflected a very competitive market for Consumer renewals with competitors aggressively pricing and Just Energy’s focus on improving retained customers’ profitability rather than pursuing low margin growth.

Balance Sheet & Liquidity

The Company remains committed to maintaining its improved balance sheet. As of June 30, 2017, Just Energy’s book value net debt to the trailing 12-month Base EBITDA was 2.0x, higher than the 1.8x reported March 31, 2017, but significantly improved from 2.6x one year ago.

  • Cash and short-term investment were $81.0 million as of June 30, 2017, a decrease of 3% from $83.6 million reported one year ago. The decrease in cash is primarily attributable to the payment of dividends in the first quarter of fiscal 2018.
  • Long-term debt of $520.6 million as of June 30, 2017 increased from $498.1 million as of March 31, 2017. This increase is a result of the withdrawal of an additional $24.7 million on the credit facility.
  • Base funds from operations („Base FFO”) were $20.5 million, a decrease of 20% compared with $25.7 million in the prior fiscal year. Base FFO decreased due to the lower Base EBITDA in the current quarter partially offset by the decrease in cash financing costs in the current quarter of $4.9 million as a result of the Company’s finance restructuring efforts over the past year.
  • The payout ratio for the trailing 12 months ending June 30, 2017 was 65%, compared with 56% for the trailing 12 months ended June 30, 2016. It is anticipated that the payout ratio will increase in the current fiscal year over prior year as a result of the dividends associated with the preferred shares issued in February 2017.
  • Dividends and distributions for the three months ended June 30, 2017 were $21.8 million, an increase of 16% from the prior comparable quarter in fiscal 2017, reflecting the $3.0 million dividends payments to preferred shareholders following the issuance of preferred shares in February 2017.
  • Common share repurchases totaled $11.4 million as of June 30, 2017.

Outlook

Just Energy continues to deploy its strategy to become a world-class consumer enterprise delivering superior value to its customers through a range of energy management solutions and a multi-channel approach. The Company has recently completed a phase of internal transformation centred on repairing its balance sheet and overall debt structure, as well as improving the profitability profile of its customer base. Just Energy’s growth plans centre on customer growth, geographic expansion, channel growth and enhancements, strategic acquisitions, and new products and structures.

Management believes that the Company will deliver fiscal 2018 Base EBITDA in the range of $210 million to $220 million. These expectations reflect the significant investments to seed Just Energy’s international operations, to further invest in product and geographic growth initiatives, and to pay up-front commissions related to customer growth in fiscal 2018.

While the operating expenditures to fund growth will present a challenge to fiscal 2018, management expects to still return to growth in Base EBITDA for fiscal 2019 and beyond, returning to the double-digit percentage growth as delivered in the past. This expectation is in line with Just Energy’s previous performance under the current leadership team (fiscal 2015- 2017) when the Company delivered a Base EBITDA compound annual growth rate of 10.2% and 14.8% prior to the deduction related to Commercial customer acquisition costs.

The Company’s balance sheet improvement initiatives have resulted in a significantly improved debt ratio and management remains committed to maintaining this level.

The repositioned business model has improved the Company’s ability to drive profitability and cash generation, thus providing management with the confidence and freedom to commit to future dividend distributions at the current $0.50 per common share level and to maintain the preferred shares dividend.

Earnings Call

The Company will host a conference call and live webcast to review the fiscal first quarter results beginning at 10:00 a.m. Eastern Standard Time on August 10th, 2017 followed by a question and answer period. Rebecca MacDonald, Executive Chair, President & Co-Chief Executive Officers James Lewis and Deborah Merril, and Chief Financial Officer Patrick McCullough will participate on the call.

Just Energy Conference Call and Webcast

  • Thursday, August 10th, 2017
  • 10:00 a.m. EST

Those who wish to participate in the conference call may do so by dialing 1-877-870-4263 and ask to be joined into the Just Energy call. The call will also be webcast live over the internet at the following link:

https://www.webcaster4.com/Webcast/Page/1731/22127

An audio tape rebroadcast will be available starting one hour after the conference and will be available until August 17, 2017. To access the rebroadcast please dial 1-877-344-7529 and ask to be joined into the Just Energy call.

About Just Energy Group Inc.

Established in 1997, Just Energy (NYSE:JE) (TSX:JE) is a leading retail energy provider specializing in electricity and natural gas commodities, energy efficiency solutions, and renewable energy options. With offices located across the United States, Canada, the United Kingdom and Germany, Just Energy serves approximately 1.6 million residential and commercial customers providing homes and businesses with a broad range of energy solutions that deliver comfort, convenience and control. Just Energy Group Inc. is the parent company of Amigo Energy, Green Star Energy, Hudson Energy, Just Energy Advanced Solutions, Tara Energy and TerraPass.

FORWARD-LOOKING STATEMENTS

Just Energy’s press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, dividends, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy’s operations, financial results or dividend levels are included in Just Energy’s annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com, on the U.S. Securities Exchange Commission’s website at www.sec.gov or through Just Energy’s website at www.justenergygroup.com.

Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved nor disapproved of the information contained herein.

Sun Life Financial declares dividends on Common and Preferred Shares payable in Q3 2017

TORONTO, Aug. 9, 2017 /PRNewswire/ - The Board of Directors of Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced a dividend of $0.435 per common share, payable September 29, 2017, to shareholders of record at the close of business on August 30, 2017. This is the same amount as paid in the previous quarter.

The Board announced that the following quarterly dividends on its Class A Non-Cumulative Preferred Shares are payable on September 29, 2017, to shareholders of record at the close of business on August 30, 2017:

Series 1

$0.296875 per share

Series 2

$0.30 per share

Series 3

$0.278125 per share

Series 4

$0.278125 per share

Series 5

$0.28125 per share

Series 8R

$0.142188 per share

Series 9QR

$0.122184 per share

Series 10R

$0.177625 per share

Series 11QR

$0.170074 per share

Series 12R

$0.237875 per share

 

Common shares acquired under the Canadian Dividend Reinvestment and Share Purchase Plan (the "Plan") will be purchased by the Plan agent on the open market through the facilities of the Toronto Stock Exchange and though the facilities of other Canadian stock exchanges and alternative Canadian trading platforms.

Sun Life Financial Inc. has designated the dividends referred to above as eligible dividends for the purposes of the Income Tax Act (Canada).

About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of insurance, wealth and asset management solutions to individuals and corporate Clients. Sun Life Financial has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2017, Sun Life Financial had total assets under management of $944 billion. For more information please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars

Media Relations Contact:
Kim Armstrong
Manager, Media & PR
Corporate Communications
T. 416-979-6207
kim.armstrong@sunlife.com

Investor Relations Contact:
Greg Dilworth
Vice-President
Investor Relations
T. 416-979-6230
investor.relations@sunlife.com

SOURCE Sun Life Financial Inc.